| Deduction | |
 Any item or expenditure subtracted from gross income to reduce the amount of income subject to tax. Also referred to as "allowable deduction." |
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 For example, if you make $40,000 and you have a deduction for $1,000, then your taxable income is reduced to $39,000. |
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 Five Tips for the Tax-Smart Investor - Being tax savvy can help you increase your returns more than you'd expect! Traditional IRA Deductibility Limits - Learn if you can take a tax deduction on any participant contribution you make. The Saver's Tax Credit: an Added Incentive to Fund Your Plan - Are tax deductions not inciting you to make contributions? Here's another reason to put money toward a next egg. |
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